Lingo Media Corporation
OTC Bulletin Board : LMDCF

Lingo Media Corporation

April 30, 2009 19:44 ET

Lingo Media Reports Fourth Quarter and Year End Results

TORONTO, ONTARIO--(Marketwire - April 30, 2009) - Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) ("Lingo Media" or the "Company"), a leader in online and print-based English language learning solutions, and Speak2Me Inc. ("Speak2Me") its wholly owned subsidiary, a state-of-the-art online English language learning service, announces its financial results for the fourth quarter and fiscal year ended December 31, 2008. All figures are reported in Canadian dollars, and are in accordance with Canadian GAAP unless otherwise noted.

2008 Operating and Financial Highlights;

Business Highlights

- Launched Version 1.0 in December 2008 with an expanded feature set based on feedback from our users.

- Developed a corporate training offering that provides premium content and custom training services specific to business English called Speak2Me Business English 101.

- Secured first Conversational Advertising™ contract with Mercedes-Benz's smart car. This contract validates Speak2Me's Conversational Advertising™ platform and business model.

- Lingo Media's wholly-owned subsidiary, Lingo Learning Inc., has published more than 278 million units up to the end of December 2008

- Completed equity financing of $5 million in October 2008 with Orascom Telecom Holdings S.A.E., a major international telecommunications company that serves over 90 million mobile phone subscribers worldwide, positioning Speak2Me to capitalize on its growth opportunity.

- Increased and strengthened the management team and board of directors to assist the Company in delivering the best technology-based solutions for learning spoken English.

-- Steven Chiu joined Speak2Me as President, Greater China. Mr. Chiu has helped many of the world's leading multinational corporations to establish and grow their operations in China. Mr. Chiu is managing operations and building advertising, sponsorship and training sales in the Greater China region.

-- Anthony Lacavera, Lingo Media Director, founder of Globalive Communications Corp. and telecom and new media industry veteran, has been assisting with strategic planning for Speak2Me and helping to maximize revenue growth throughout all of Speak2Me's product and marketing initiatives.

-- Ashraf Halim, Lingo Media Director, responsible for Strategic Marketing for Orascom Telecom Holdings S.A.E, has experience in market strategy, commercial budgeting, pricing, products and services roadmap and research for the mobile industry.

-- Ashesh Shah, Lingo Media Director, an entrepreneur and corporate advisor, has been leveraging his expertise in technology and education to explore the expansion of Speak2Me into new regions and into mobile applications.

Michael Kraft, President & CEO of the Lingo Media said, "We have restructured Lingo Media and focused the business on delivery of Speak2Me, our revolutionary English language learning service to the world market. During 2008, we established an excellent foundation to position us for the coming year. The Lingo Media team is committed to becoming one of the leading names in the education industry, by creating the most compelling community online for people to learn and to communicate in English; a place that is fun, effective and relevant".

The Company granted 370,000 incentive stock options to members of management of the Company and its subsidiaries (collectively, the "Management Options"). In addition, Lingo Media granted 80,000 incentive stock options to certain employees of the Company and its subsidiaries (collectively, the "Employee Options"). The Company also granted 167,250 incentive stock options to various independent directors of the Company (collectively, the "Director Options") each under its Stock Option Plan. The Management Options, Employee Options and Director Options are exercisable at $1.75 per share and vest equally over a period of 18 months in 3 month intervals for a period of five years excluding 100,000 of the Management Options which vest 50% after 9 months and 50% after 21 months and are subject to certain milestones being achieved.

The exercise price of $1.75 per share represents a 100% premium over the closing price of Lingo Media's common shares on the TSX Venture Exchange on the date of grant. All options granted and any common shares issued upon their due exercise will be subject to a statutory four-month hold. The granting of options is subject to regulatory acceptance and applicable filings.

Financial Highlights

- Fourth quarter revenue from continuing operations was $534,311 compared to $617,531 in Q4-07. Net loss from continuing operations in the Q4-08 was $746,568 or $0.07 per share compared to $167,802 or $0.02 per share in Q4-07. This includes a non-recurring charge of $340,000 for a write-off of an impaired investment.

- Year end revenue from continuing operations increased by 10% in 2008 to $969,128 compared to $879,626 in the previous year of FYE-07. FYE net loss from continuing operations was $2,311,474 or $0.22 per share, compared to $632,192 or $0.11 per share in FYE-07.

- On December 23, 2008, Lingo Media's 70.33% owned subsidiary, A+ Child Development (Canada) Ltd. ("A+"), filed a Notice of Intent to make Proposal under the Bankruptcy and Insolvency Act. The Company wrote-down the carrying value of its 70.33% investment in A+, resulting in a charge of $1,571,369 (2007 - $292,848) to earnings, included in the write-down was $277,201 in future income tax assets related to its A+ subsidiary.

- All comparative figures have been adjusted to exclude results from discontinued operations. The Company reported a net loss of $3,882,843 or $0.37 per share for the FYE-08 as compared to a net loss of $925,040 or $0.16 per share in FYE-07.

The audited annual financial statements for the year ended December 31, 2008 and Management Discussion & Analysis are available at

About Speak2Me

Speak2Me (, a wholly-owned subsidiary of Lingo Media, is an online English language learning ("ELL") community that incorporates Lingo Media's proven pedagogy with fun, interactive lesson modules to address the rapidly growing need for spoken English worldwide. Speak2Me's groundbreaking service uses speech recognition technology to teach spoken English online through more than 350 targeted lessons that engage users in interactive conversations with a virtual teacher. A unique social-networking infrastructure that allows students to form study groups and offers contests, prizes and other incentives, creates a learning environment that engenders co-operation and competition, just as in a conventional classroom. Speak2Me's patent-pending Conversational Advertising(tm) platform allows Speak2Me to provide its innovative offering to end-users at no cost. In addition, Speak2Me offers premium content development services and custom training modules to support businesses and institutions that require English language training for their personnel. For more information about Speak2Me and its business offerings, please visit


Lingo Media ( is a diversified online and print-based education products and services corporation focused on English Language Learning (ELL) on an international scale through its Lingo Learning Inc. subsidiary, a print-based publisher of ELL programs in China, and Speak2Me, an online ELL community. Lingo Media has formed successful relationships with key government and industry organizations, establishing a presence in China's education market of 250 million students. Since 2001, the Company has published more than 278 million units in China from its library of 340 program titles, and 350 online speaking lessons and 250 eZines. Lingo Media continues to expand its ELL offering and extend its reach on a global scale.

Portions of this press release may include "forward-looking statements" within the meaning of securities laws. Forward-looking statements contained in this press release are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve certain risks and uncertainties. Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian and United States securities regulators available on or


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